Decide Your Earning Potential

By: Ejaz Alam | Topic: Personal Finance

Everybody loves to inherit enormous amount of wealth or win a big lottery in order to get rich. Unluckily a very few gets a chance like this. Most of us need to work hard to fulfill our needs. Of course, we daydream of becoming rich and it is not bad. We are often told to have an optimistic approach towards our daily affairs.

Well to me conservative optimism about one’s future is good but wild optimism without any basis need to be avoided.

You will agree with me that having realistic financial optimism is a healthy sign. It means that you should base your entire future financial outlook on some good strong rationales’.

For having your future financial outlook you need to assess your present financial status and your earning potential. Basing on these two factors you can well assess your future financial standing.

If You Are Without a Job

If you are jobless or still studying for a profession you need to assess your qualification. Of course a person with a medical degree will have different earning potential than one with a finance degree. Assess your educational level and the courses you have taken then think of the expected earning potential with such qualifications. Ask yourself the question that, whether you will be able to earn enough according to your needs if you go for the particular profession.

If you become a mechanic or enter into janitorial services then realistically you should not dream of becoming a millionaire very soon. However if you are an expert at a highly in demand profession then your financial outlook should be balanced with that.

If You Are In A Job

Right! You work very hard in your 9-5 job. Have you ever assessed your earning potential according to your qualifications and abilities? If you think you are perfectly paid according to your capabilities the you should be an extremely satisfied person. Keeping in view your present financial status and level of earning you can easily assess your financial position in the years to come.

If you are earning 2000 bucks and spend only 1500, you can easily do the math with your savings and investments. In addition to this you have to also keep in mind the inflation rate also, that will surely effect your earning potential. But all this math can be done while keeping your debt, mortgage, insurance expenditures in mind. You can really build wealth but slowly and gradually.

If You Are In a Business

Well being in a business is an altogether different scenario. Your earning potential in a business depends on the type of business, amount of investment, your level of expertise, your completion and the amount of hard work you put in etc.

Your earning level in a biz can fluctuate. We can say that only a business can make you extremely rich. To support these wording we can assume sudden growth in the demand of your product.

If you are realistic enough you can easily assess the earning potential of your business. Of course a business person have a bit of extra leverage of dreaming high. I do not at all mean you just dream wild of getting rich overnight. However if you can reinvest your savings intelligently and cater for all the requirements of a good business you can surely improve your earning potential.

Final Word

We all need money and of course work for it to. The main requirement is to judiciously assess your present financial status and future earning potential. Depending upon your assessments results, you can become optimistic about your future financial outlook. Therefore aim at realistic approach about your financial future. Useless day dreaming will result into unhappiness and frustration in your life.

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